'Racism' in the time of 3G auctions
Rice and telecommunications! Hey, what has rice to do with telecommunications? Don't jump into conclusions; nor try to compare rice with telecom in this incredible India!
In this incredible India, where odd combinations are quite usual, rice too seems to have a contextual relevance in the telecom sector. At least that's what the statement of our telecom minister makes us think.
Ok. No more beating about the bush. Though many would have already assumed what I'm implying at, for those who haven't yet, this is how our Telecom Minister A Raja compared 2G and 3G spectrum bids.
I'm quoting here a portion from a report in The Economic Times that appeared two days back: On the comparison being drawn in certain circles about revenues from sale of 2G spectrum, for which the licences were given in early 2008, and 3G, he (The Telecom Minister) shot back: “We can't compare PDS rice with Basmati rice.
Now, if you are amused at this queer comparison of our respected Telecom Minister, I'm not really. In poverty-ridden India more people use PDS rice than Basmati. Forget the 'racism' in the minister's statement and better think of the economics of what he said. Of course, it is this economics which put the minister in a hot 2G soup.
The 3G spectrum auction that began on April nine, with nine mobile operators in the fray for three pan-India slots of spectrum, rose as high as 139.4 per cent above the base price to 83.8 billion rupees ($1.9 billion) till two days back.
Not just that. Through the bid, earlier the Indian Government was eyeing Rs 35,000 crore (including BWA spectrum auction), but now, as per the latest estimates, 3G auction alone will garner Rs 50,000-55,000 crore. Huge, right!
Now, coming to the 2G bid, price of pan-India 2G spectrum is being given away at Rs 1,650 crore, whereas one block of pan-India 3G spectrum closed (on Tuesday) at Rs 8,662 crore, which is Rs 7,011 crore more than 2Gs!
Now doesn't that sound similar to the difference in the prices of Basmati and PDS (Public Distribution System) rice. On one hand the price of Basmati rice starts at Rs 100, while on the other PDS rice come as cheap as Rs 2 for the BPL Indian! Also, keep in mind that though the quality is 'very cheap' the government incurs heavy financial burden in PDS because it serves a social purpose. But in 2G there seems to be no such purpose.
Then what is that makes the comparison between PDS and 2G possible? The stink that emerges from both?! Was our Telecom Minister indirectly implying that the rice distributed through our Public departments are low of quality, and so is 2G?
Only the minister can answer the riddle. So let's stop thinking over here!
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